CHAPTER 2

Management and organization

The management and organization section is the

information about your business' organizational structure,

participating business members' duties and expertise, as well as

their education or qualifications. While business plan

outlines vary, often this section comes after the market

analysis. 

This section is especially important if you have a partnership or

a multi-member limited liability company (LLC).

Business Organization is having a solid plan for how your

business will run is a key component of its smooth and successful

operation. Of course, you need to surround yourself with good

people, but you have to set things up to enable them to work well

with each other and on their own.

It’s important to define the positions in the company, which

job is responsible for what, and to whom everyone will report.

Over time, the structure may grow and change and you can

certainly keep tweaking it as you go along, but you need to have

an initial plan.
 

If you’re applying for funding to start a business or expand

one, you may not even have employees to fit all the roles in the

organization. However, you can still list them in your plan for

how the company will ideally operate once you have the ability to

do so.

Obviously, for small businesses, the organization will be

far more streamlined and less complicated than it is for larger

ones, but your business plan still needs to demonstrate an

understanding of how you’ll handle the work flow. At the very

least, you’ll need to touch on sales and marketing,

administration, and the production and distribution of your

product or the execution of your service.

For larger companies, an organizational plan with well-

thought-out procedures is even more important. This is the best

way to make sure you’re not wasting time duplicating efforts or

dealing with internal confusion about responsibilities. A smooth-

running operation runs far more efficiently and cost-effectively

than one flying by the seat of its pants, and this section of
your business plan will be another indication that you know what

you’re doing.

A large company is also likely to need additional

operational categories such as human resources and possibly

research and development.

One way to explain your organizational structure in the

business plan is graphically. A simple diagram or flowchart can

easily demonstrate levels of management and the positions within

them, clearly illustrating who reports to whom, and how different

divisions of the company (such as sales and marketing) relate to

each other.

Here is where you can also talk about the other levels of

employees in your company. Your lower-level staff will carry out

the day-to-day work, so it’s important to recognize the types of

people you’ll need, how many, what their qualifications should

be, where you’ll find them, and what they’ll cost.

 
 If the business will use outside consultants, freelancers,

or independent contractors, mention it here as well. And talk

about positions you’d want to add in the future if you’re

successful enough to expand.

While the business management explain about the need to meet

the people who’ll be running it. Who does what, and why are they

on board? This section is important even for a single

practitioner or sole proprietorship, as it will introduce you and

your qualifications to the readers of your plan.

The company name was inspired by the several concepts which

can define our services. The word magic reflects to our services

on how we care of the costumers wherein they can

Feel the feeling that never done them before.

Location provided an easily accessible location for

customers. Providing and environment conducive to giving relaxing

and professional services. We want to locate our business in Zone

II, Iba, Zambales. It is along the highway where you can easily

find the Magic Salon.

Our long-term goal at Magic salon is to enhance each guest

by bringing out her inner beauty and confidence. Continuing

education is of utmost importance because we always want to be on

the cutting edge of new and glamorous trends as well as

proficient in the latest techniques and technologies. We

appreciate each and every guest because with your support we have

the opportunity to expand our artistry and lift spirits.

Mission

To supply services and products that enhance our clients’

physical appearance and mental relaxation.

The timing is right for starting this new venture. Patiently

the demand from the owner’s clients, as well as the ambitions of

one owner to one day start her own salon, and the procurement of

highly professional and qualified beauticians to support the

salon, has made this business one of the great potential.

Salon owner

Name: Mr. Kent Abela

Age: 35

Marital status: Single

Education: Bachelor of Science in Business Administration

Work experience: Manager in David’s salon year 2007

Position title: Owner of magic salon

Salon manager

Name: Ms. Zyrelle Flordeliz

Age: 33

Marital status: Single

Education: Bachelor of Science in Business Administration

Work experience: Asst. manager at team Sir George Salon

Position title: Magic Salon Manager

Stylist and technicians

Name: Lorena Polon

Age: 31

Marital Status: Single

Education:

Work Experience:

Position Title: Stylist and technicians in Magic salon

Name: Micah Anoba

Age: 32

Marital status: Single

Education:

Work experience:

Position title: Stylist and Technicians in Magic Salon

Name: Chindy Mabagos

Age: 37

Marital status: Single

Work experience:

Position title: Stylist and Technicians in Magic Salon

Receptionists

Name: Nikka E. Monceda

Age: 27

Marital status: Single

Education:

Work experience:

Position title: Magic Salon Receptionist

Name: Cristina T. Leomo

Age: 28

Marital status: Single

Education:

Work experience:

Position title: Magic Salon Receptionists

Name: Phoebe Manalad

Age: 36

Marital status: Single

Education:

Work experience:

Position title: Salon assistant in Magic Salon

Name: Delry Barried

Age: 30

Marital Status: Single

Education:

Work Experience:

Position title: Salon Assistant in magic salon

Mr. Kent Abela

Salon owner

Ms. Zyrelle Flordeliz

Salon Manager

Nikka Monceda Chindy Mabagos Phoebe Manalad

Stylist and Technicians

Not necessarily trained in cosmetology, but a business

professional nonetheless, the beauty salon owner resides at the

head of the organizational chart. While specific day-to-day

responsibilities vary based on the individual salon, the owner

primarily concerns herself with costumer services, human

resources and financial details. The salon owner makes hiring,

marketing, property, inventory and design decisions, while

staying involved in staff licensing and business certification

requirements. If the salon owner is a licensed cosmetologists,

he/she also styles hair and executes other beauty processes for

which he/she appropriately trained.

Salon Manager

Reporting to the salon owner, a salon manager provides

orientation to the salon staff, explaining operational procedures

and functions, which are based on company policy. The manager

works with the staff member to improve performance and ensure

quality services while maintaining cleanliness and costumers

satisfaction. In cooperation with the salon owner, the manager

also analyses personnel records, requisition supplies,

participates in disciplinary procedures and assists in resolving

customer complaints.
Stylists and Technicians

Hairstylist, nail technicians, color specialist,

aestheticians and makeup artist commonly work as peers within a

salon, reporting to the manager, through some organizations have

senior and junior-level stylists or technicians, based on

experience or tenure. Each performs his own specialty service and

recommends the services hid peers provide, as his costumers

require.

Receptionist

A salon’s receptionists reports to the salon’s manager and

answers the telephone, schedules appointments, greet customers,

explains services to callers and visitors, and operates a cash

register. Because the receptionist is usually the first person a

customer encounters at the salon, she is responsible for creating

a comfortable and welcoming atmosphere. For this reason, she is

held accountable for the entire reception area, including its

arrangement, organization and cleanliness.

The salon assistant provides additional support to the staff

through taking responsibility for laundry, handling retail sales,

sterilizing equipment, sweeping floors and even preparing clients

for services. Client preparations that a salon assistant may

execute without possessing a cosmetology license include offering

a salon robe, draping for services or even shampooing the hair.

Assistants may report to the manager or to the other staff

members, such as hairstylists.

Ownership, Capitalization, Compensation and Incentives

Magic salon has to register in various legal requirements

and processes. It is warranted and legitimate registered in BIR

(Bureau of Internal Revenue), registered name in DTI (Department

and Trade Industry), legal permits through barangay clearance

and, Business permits and Mayor’s permit.

To establish the Magic Salon business, the capital should be

sufficient. The magic salon will start with a capital of two

million pesos (Php 2,500,000) to be contributed by the following

partners:
 Name Amount To Be Contributed
Kent Abela PHP. 250,000
Zyrelle Flordeliz PHP. 250,000
Anoba, Micah PHP. 250,000
Barried, Delry PHP. 250,000
Javier, Angelica PHP. 250,000
Leomo, Cristina PHP. 250,000
Mabagos, Chindy PHP. 250,000
Manalad, Phoebe PHP. 250,000
Monceda, Nikka PHP. 250,000
Polon, Lorena PHP. 250,000
TOTAL PHP. 2,500,00

External Management Support

Barangay Certification – Brgy. Zone 1, Iba, Zambales

Sanitary Permit – Municipal Rural Health Unit

Mayor’s Permit – Municipality of Iba

Fire and Safety Inspection Certification – BFP

Environmental Permit – PENRO

Certificate of Registration – SEC

Articles of Partnership – SEC

Certificate of Registration & TIN – BIR

SSS Registration and Certification

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